Analyst Expectations For Vulcan Materials's Future

7 analysts have shared their evaluations of Vulcan Materials VMC during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have recently evaluated Vulcan Materials and provided 12-month price targets. The average target is $260.57, accompanied by a high estimate of $300.00 and a low estimate of $208.00. This current average has increased by 5.64% from the previous average price target of $246.67.

Understanding Analyst Ratings: A Comprehensive Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Vulcan Materials. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Vulcan Materials. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Vulcan Materials compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Vulcan Materials's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Vulcan Materials's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Vulcan Materials analyst ratings.

Delving into Vulcan Materials's Background

Vulcan Materials is the United States' largest producer of construction aggregates (crushed stone, sand, and gravel). Its largest markets include Texas, California, Virginia, Tennessee, Georgia, Florida, North Carolina, and Alabama. In 2023, Vulcan sold 234.3 million tons of aggregates, 13.4 million tons of asphalt mix, and 7.5 million cubic yards of ready-mix. As of Dec. 31, 2022, the company had nearly 16 billion tons of aggregates reserves.

Vulcan Materials: Financial Performance Dissected

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Negative Revenue Trend: Examining Vulcan Materials's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -16.08% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Net Margin: Vulcan Materials's net margin is impressive, surpassing industry averages. With a net margin of 12.4%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.05%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Vulcan Materials's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.56%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Vulcan Materials's debt-to-equity ratio surpasses industry norms, standing at 0.59. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.